The tempest: Natural disasters, Early Shocks and Children's Short- and Long-Run Development

Socio-economic shocks during early childhood are predicted to have
detrimental short- and long-run consequences for children's
development. We examine this hypothesis using a specific shock:
housing damages caused by a super-typhoon. Comparing children, who
lived in the same district, but only some experienced housing
damages, we can isolate the real-estate shock from any further
arising macro-economic consequences. Our results reveal detrimental
effects on children’s education - not, however, on health -
which aggravate over time. Yet, these findings are driven by
children whose families are at the bottom of the wealth distribution
or lack the support of a family network.